Tesla Inc., American automaker, will have spent a little more than $10 billion by the end of the year without even having earned 10 cents. Ironically, companies across the world consider Tesla to be one of their biggest competitions.
Automakers such as Volkswagen AG, Daimler AG and many more have pledged to release at least 50 new models of electric cars before 2022. General Motors Co. has promised to launch 20 all-electric vehicles by 2023. Moreover, James Dyson (British industrial designer) too is venturing into the electric-car market by investing over two billion pounds ($2.7 billion) in the project.
The logic behind competing with Tesla is partly for show and partly for city hall. Regulators in China have made the production of electric vehicles mandatory. Simultaneously, Elon Musk—CEO of Tesla Inc.—has managed to captivate investors and consumers to the extent where they are blinding spending their money on the company.
According to data from Bloomberg New Energy Finance, by the first quarter of 2022, the number of electric vehicles will rise to 47 in North America. The European and the Chinese markets will soar up to 58 and 80 respectively. By the end of the year, it is estimated that there will be around 136 electric vehicles on a global scale.
According to the International Energy Agency, in the U.K. and China, 1.4 percent of the market was formed by the sale of electric vehicles last year, whereas the sale of electric cars was less than 1 percent in the U.S. market.
Electric automakers lose out a lot of money due to extremely costly battery technology. For example, Tesla lost about $675 million from electric vehicle sales last year and General Motors lost an average of $9,000 on each and every Chevrolet Bolt it sold.
In order to control pollution and carbon emissions by 2030, China has levied a few mandatory boosts in the production of electric vehicles and other new-energy vehicles. China, being world’s largest market for cars, has seen foreign automakers make attempts to step up their game in offering electrification technology in China. Most of the electric car models are deemed to be in the luxury car category; Tesla’s Model S and Model X sell for more than $100,000.
There are many significant new models that are going to hit the market: Porsche AG’s Mission E sports sedan (2019), BMW’selectric Mini (2019) and X3 compact SUV (2020), VW’s Audi’s E-tron Quattro (2018) and Tesla’s Model Y small SUV (2019 or 2020).
With the lowered cost of batteries in the coming future, Dyson (vacuum cleaner manufacturing company) will, too, venture into the electric car market.